Advisor Compensation after the DSC/LL ban May 29, 2023

- No Load (NL)
- No Load – 3 year chargeback (NL-CB)
- No Load – 5 year chargeback (NL-CB5)
Advisors may be wondering how compensation compares under various sales charge options.
Here is an example of advisor compensation for a $100,000 segregated fund contract in the Equitable Life Active Balanced Portfolio Select.*
Year | No Load | DSC | Low Load | No Load CB | No Load CB5 |
1 | $1,008 | $5,544 | $3,024 | $3,500 | $5,600 |
2 | $1,008 | $504 | $504 | $504 | $504 |
3 | $1,008 | $504 | $504 | $504 | $504 |
4 | $1,008 | $504 | $1,008 | $504 | $504 |
5 | $1,008 | $504 | $1,008 | $1,008 | $504 |
6 | $1,008 | $504 | $1,008 | $1,008 | $504 |
7 | $1,008 | $504 | $1,008 | $1,008 | $504 |
8 | $1,008 | $504 | $1,008 | $1,008 | $504 |
Contract Value | Total Compensation Paid | ||||
$100,000 | $8,064 | $9,072 | $9,072 | $9,044 | $9,128 |
Over an 8-year period, total advisor compensation with the CB5 sales charge option is $9,128 versus $9,072 and $8,064 with DSC and NL respectively.
Below is the chargeback schedule for NL-CB and NL-CB5:
Month (age of units) | Commission Chargeback Schedule NL-CB |
Commission Chargeback Schedule NL-CB5 |
1 - 12 | 100% | 100% |
13 - 24 | 97.2% - 66.4% | 98.3% - 82.0% |
25 – 36 | 63.6% - 32.8% | 80.5% - 64.0% |
37 – 48 | 0% | 62.5% - 46.0% |
49 – 60 | 0% | 44.5% - 28% |
61+ | 0% | 0% |
For more information, please contact your Regional Investment Sales Manager.
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Date posted: June 15, 2023